Eman Mahran can’t find a job. The unemployed biomedical engineer has been looking for work for four years and her plight represents a large and troubling aspect of the ailing Egyptian economy.

“I graduated in 2007 and I thought I would have a bright career because of my specialty. But I lost hope, joining my unlucky generation of young Egyptians,” said Mahran, who is unmarried and lives with her retired father.

Main challenges

Egypt’s unemployment rate is approximately 12 percent, according to the International Monetary Fund. Even those who have jobs are worried. Egyptians, such as Magdy El Meshmeshy, a vice president of a manufacturing group, complains that the current political situation in Egypt is not helping the economy. “Social unrest, a security vacuum, continued instability, shrinking production and lack of incentives for medium-sized enterprises are not the right way to revive the troubled economy,” said El Meshmeshy.

“At the top of these challenges, we should mention security failure,” the economist said. “Also, corruption charges have tarnished the image of the private sector and have made it very difficult to reestablish a good image of private-led growth.” Kandil also called political instability a “genuine concern.” In addition, she listed other factors as major sources of Egypt’s economic malaise: the loss of foreign capital influx, the decline of tourism, slumping foreign direct investment, and capital flight after some Egyptians decided to just “liquidate and leave.”

Sobering facts and figures

Kandil also warned that the transitional government and the Supreme Council of the Armed Forces that now rule post-revolution Egypt must tackle the economic challenges more seriously. With a budget deficit that accounts for 10 percent of the GDP, an unemployment rate of 12 percent, an 11.8 percent rate of inflation, a 33 percent drop in tourism and a 12 percent decline in the value of the Egyptian pound relative to the Euro, the prospect of economic recovery is gloomy.

Kandil is also worried about the national debt, estimated at $35 billion, and the fact that Central Bank reserves are being used to pay for minimum wage increases. Foreign currency reserves have dropped from $36 billion to $26 billion since the revolution, according to the Egyptian Center for Economic Studies.

Then there is the issue of costly subsidies, such as the $70 billion the Egyptian government spends to support petroleum products. There is general agreement among economists that such subsidies should be slashed drastically with monies only going to the most vulnerable enterprises. They say that the huge resulting savings could help improve education and job training.

Gap between solutions and actions

Ibrahim Oweiss, a professor of economics at Georgetown University in Washington, D.C., says the government has so far not taken any major steps to deal with these daunting challenges.

“The first thing is really to establish a system of law and order to reestablish stability throughout the country,” Oweiss said, “and after that, things could move forward because there are great potentials for the Egyptian economy in the future.”

Magdy El Meshmeshy feels there is a wide gap between the available solutions and the way the ruling military council and the transitional government are handling the situation. “There is no articulated road map for the economy or a medium-range strategy so far. But if the new government starts to deal with the corruption and restoring security, investors will feel more comfortable to come back and help the Egyptian economy,” El Meshmeshy said. He argues that small and mid-sized enterprises could create more jobs and contribute to reviving the economy.

What the economy needs

Experts agree that priorities should be focused on improving security, and on political reforms that ensure good governance and accountability. These reforms should be coupled with a well-defined and forward-looking economic strategy that will restore confidence and bring back domestic and foreign investment.

“There is a lot to be desired in terms of legislation to fight corruption, red tape and bureaucracy,” Kandil of the Egyptian Center for Economic Studies said. She complained that the ruling military council and the transitional government did not articulate a clear vision for the post-revolution economy. “They need to press ahead with reforms to ease controls on lending to small and medium size enterprises, reform existing labor laws, reduce waste in government spending and increase efficiency in tax collection to boost revenues.”

Many Egyptians feel that after years of organized corruption, an economy dominated by government-protected business monopolies, and stark injustices in wealth distribution, there is a need to build a private sector that will put the economy back on its feet. El Meshmeshy put it this way: The government needs to come forward with “a clear message about the private sector leading the growth and creating jobs, more incentives and a new image of the private sector away from the corruption that tarnished the reputation of businessmen during the Mubarak years.”

The consensus among experts is that crony capitalism basically prevented the fruits of Egypt’s past economic growth from reaching the working class. Consequently, there is now a need to put special emphasis on promoting sectors with employment opportunities that will help the wealth trickle down.

Eman Mahran, the unemployed biomedical engineer, agrees. “With less corruption and more focus on the quality of education and health care, more jobs would be available for qualified people and that will help me join the work force in the near future,” she says hopefully.

Follow our Middle East reports on Twitter and discuss them on our Facebook page.

At this year's annual South by Southwest film and music festival in Austin, Texas, some musicians from Mali were on hand to promote a film about how their lives were upturned by jihadists who destroyed ancient treasures in the city of Timbuktu and prohibited anyone from playing music under threat of death. As VOA’s Greg Flakus reports from Austin, some are afraid to return to their hometowns even though the jihadists are no longer in control there.

Video

At this year's annual South by Southwest film and music festival in Austin, Texas, some musicians from Mali were on hand to promote a film about how their lives were upturned by jihadists who destroyed ancient treasures in the city of Timbuktu and prohibited anyone from playing music under threat of death. As VOA’s Greg Flakus reports from Austin, some are afraid to return to their hometowns even though the jihadists are no longer in control there.

Video

American warplanes joined Iraq's battle against the so-called 'Islamic State' in northern Iraq late Wednesday, as Iraqi ground troops launched a massive assault on Tikrit. Analysts say the offensive could take the coalition a step further towards Mosul, the largest city held by Islamic State forces. Others say it could also deepen already-dangerous sectarian tensions in the region. VOA's Heather Murdock has more from Cairo.

Video

Tourism is a multi-billion dollar industry in the Philippines. Close to five million foreign visitors traveled there last year, perhaps lured by the country’s tropical beaches. But Jason Strother reports from Manila that the country hopes to entice more travelers to stay indoors and spend money inside new casinos.

Video

The continued fighting in eastern Ukraine and the shelling of civilian neighborhoods seem to be pushing more men to join the separatist fighters. Many of the new recruits are residents of Ukraine made bitter by new grievances, as well as old. VOA's Patrick Wells reports.

Video

Islamic State fighter, a prisoner of Kurdish YPG forces, asked his family asking for forgiveness: "I destroyed myself and I destroyed them along with me." The Syrian youth was one of two detainees who spoke to VOA’s Kurdish Service about the path they chose; their names have been changed and identifying details obscured. VOA's Zana Omer reports.

Video

More is being discovered about the co-pilot in the crash of Germanwings Flight 9525 in the French Alps. Investigators say he was hiding a medical condition, raising questions about the mental qualifications of pilots. VOA's Carolyn Presutti reports.

Video

In cities with heavily congested traffic, people can get around much faster on a motorcycle than in a car. But a rider who is not sure of his route may have to stop to look at the map or consult a GPS. A Russian start-up company is working to make navigation easier for motorcyclists. Designers at Moscow-based LiveMap are developing a smart helmet with a built-in navigation system, head-mounted display and voice recognition. Zlatica Hoke has more.

Video

U.S. federal law enforcement agents arrested two suburban Chicago men accused of trying to join ISIS overseas, while also plotting attacks in the United States. As VOA’s Kane Farabaugh reports from the Midwest state of Illinois, one of those arrested is a soldier of the Illinois National Guard.

Video

Traditional push-rim wheelchairs create a lot of stress for arm, shoulder and neck muscles and joints. A redesigned chair, based on readily available bicycle technology, radically increases mobility while reducing the physical effort. VOA’s George Putic reports.

Video

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.

Video

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.

Video

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.